Internet Security Systems
reported a third-quarter profit Tuesday versus a loss from a year ago, beating Wall Street earnings estimates by a penny.
The Atlanta-based intrusion-detection softwaremaker reported GAAP net income of $6.3 million, or 13 cents a share, on $61.8 million in revenue. Thatcompares to a net loss of $6.1 million, or 13 cents a share, on $52.7 million in revenue in the same period a year earlier. Excluding charges, the company reported pro forma net income of 12 cents a share, up from 2 cents a share in the year-ago period.
Wall Street was expecting the company's pro forma earnings to be sequentially flat, at 11 cents a shareand revenue to ring in at $61.1 million, virtuallyflat from the $60 million reported in the secondquarter, according to Thomson Financial/First Call.The company's forecast placed earnings at 11 cents to12 cents a share on revenue of $60 million to $63million.
Wall Street was expecting ISS to make its numbersfollowing a positive earnings report from
last week. The twosecurity-software makers have entered a partnership tojointly develop and sell a combined intrusiondetection-network management product, on track for alaunch in the first quarter.
For the fourth quarter, ISS said it expects toreport revenue ranging from $64 million to $68 millionand pro forma earnings ranging from 14 cents to 16cents a share. That brings revenue for the fiscal yearending in December to a range of between $244 millionand $248 million and pro forma earnings to a range of47 cents to 49 cents a share.
In July, ISS lowered full-year guidance, bringingpro forma earnings to a range of 45 cents to 50 centsa share on revenue of $245 million to $252 million.Wall Street was projecting fourth-quarter earnings of14 cents a share on $65 million in revenue andfull-year earnings of 45 cents a share on revenue of$244.6 million.
Shares of the ISS rose 30 cents, or 1.9%, to closeat $16.20. After the company announced its results,shares climbed 3.4%.